Mega Bank has a leverage multiplier of 10. It achieves an asset utilization ratio of 14% with an operating revenue of $20,000. Given a net operating profit of $1,900, what is its return on equity? (Give your answer in percentage terms and to one decimal place. Do not include "%" in your answer.)
Mega Bank has a leverage multiplier of 10. It achieves an asset utilization ratio of 14% with an operating revenue of $20,000. Given a net operating profit of $1,900, what is its return on equity? (Give your answer in percentage terms and to one decimal place. Do not include "%" in your answer.)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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A 284.
Transcribed Image Text:Mega Bank has a leverage multiplier of 10. It achieves an asset utilization ratio of 14% with an operating revenue of $20,000. Given a net
operating profit of $1,900, what is its return on equity? (Give your answer in percentage terms and to one decimal place. Do not include "%" in
your answer.)
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